Grain Exports from Russia Fall to Lowest Level Since 2010

From August 1 to 20, grain exports from Russia decreased by 2.5 times to 1.4 million tons, while wheat exports fell by 2.6 times. A further decline in wheat exports is expected in September, by 52.1% to 62.5%, down to 1.8 to 2.3 million tons, marking the lowest level since 2010. The surplus of products is crashing the domestic market: prices for wheat, barley, sunflower, and soybeans have dropped by 3.3% to 8.5% over the week and more than 40% over the year. A state of emergency has been declared in the Rostov region due to export issues. The Kremlin is preparing measures, including state purchases and subsidies, but these will not solve the problem, as up to 70% of exports were routed through southern ports, and alternative routes are not sufficiently effective. Transporting to the Baltic Sea ports increases costs by $30 to $50 per ton. The disruption in sales has already impacted financial reports: the net profit of the agricultural holding 'Rusagro' fell by 99% in the first half of the year. If exports do not resume, stockpiling will lead to losses for the budget and the banking system of Russia.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.